Pantheon Macro: German inflation may rebound rapidly due to energy shock

Golden Ten Data reported on March 11 that Claus Vistesen from Pantheon Macroeconomics stated in a report that Germany's final inflation data for February reflects "the calm before the storm." The overall inflation rate dropped from 2.1% in January to 1.9%, consistent with market consensus and preliminary figures. "These data are relatively mild, but as the energy shock gradually transmits to consumer prices, the situation is about to change significantly." Pantheon Macroeconomics expects Germany's inflation rate in March to rise by 0.4 percentage points to 2.3%, reflecting a sharp increase in energy inflation from -2.5% in February to 2.2%. It is expected that by this summer, the inflation rate will rise to nearly 3%. Vistesen said: "After the initial surge in energy prices, our current forecast for eurozone inflation in March is 2.4%, higher than last week's 2.2%."